Posted at 19 August 2019 / Categories Market Roundups
Market Roundup
• Investors await Fed symposium later this week
• U.S. crude oil prices increase by more than 2%
• Russian Jul Real Wage Growth (YoY) 3.5%,2.3% forecast,2.9% previous
• Russian Retail Sales (YoY), -1.0%, 1.5% forecast, 1.4% previous
• Russian Jul Unemployment Rate, 4.5%, 4.5% forecast 4.4% previous
• Russian GDP Monthly (YoY), 1.7%,- 0.7% previous.
Looking Ahead - Economic Data (GMT)
• No Economic Data
Looking Ahead - Events, Other Releases (GMT)
• 01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro dipped against dollar on Monday, as the greenback rallied broadly on rising global risk appetite. The U.S. dollar strengthened against a basket of currencies as risk sentiment gradually improved after a week of turmoil on hopes that major central banks would look to launch fresh stimulus measures to lift their sluggish economies. Markets are now focused on the U.S. Federal Reserve’s Jackson Hole symposium this week for greater clarity on the future path of interest rates. An index that tracks the dollar versus a basket of six major currencies was last up 0.17 at 98.17. Immediate resistance can be seen at 1.1147 (21 DMA), an upside break can trigger rise towards 1.1223 (50 DMA).On the downside, immediate support is seen at 1.1066 (Daily Low), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling edged lower against dollar on Monday, although sentiment towards the pound was better than in recent sessions as investors hoped Britain and the European Union could make some progress in Brexit talks. The pound last week had its strongest run in two months, helped by investors cutting their bets against the currency and some buying from traders who believe Britain can avoid a no-deal Brexit in October, when the country is due to leave the EU.Prime Minister Boris Johnson will meet French President Emmanuel Macron and German Chancellor Angela Merkel this week ahead of a G7 summit on Aug. 24-26 in Biarritz, France. The pound weakened 0.14% down to $1.2124. Immediate resistance can be seen at 1.2690 (10 DMA), an upside break can trigger rise towards 1.2759 (Dec 10th High).On the downside, immediate support is seen at 1.2104 (11 DMA), a break below could take the pair towards 1.2016 (12th Aug Low).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday, as risk appetite gradually returned to global markets. U.S. stocks opened higher on Monday as signs of an interest rate reform in China bolstered hopes that major economies would act to stave off the slowing economic effects of escalating global trade tensions. Meanwhile, the price of oil rose following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs of progress in U.S.-China trade negotiations. The Canadian dollar was last trading 0.51 percent lower at C$1.3330 to the greenback. Immediate resistance can be seen at 1.3400 (Psychological Level), an upside break can trigger rise towards 1.3424 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3263 (11 DMA), a break below could take the pair towards 1.3212 (21 DMA)
USD/JPY: The dollar strengthened against the Japanese yen on Monday, as risk sentiment improved after a week of turmoil on hopes major central banks would launch fresh stimulus measures to lift their sluggish economies. Optimism about government action to calm U.S. recession concerns, triggered by last week’s inversion of the bond yield curve, grew ahead of the Federal Reserve’s symposium later in the week in Jackson Hole, Wyoming, where analysts said central bankers could announce new measures. The dollar was 0.28 percent lower versus the Japanese yen at 106.63. Strong resistance can be seen at 107.10 (21 DMA), an upside break can trigger rise towards 107.67 (50 DMA).On the downside, immediate support is seen at 105.68 (15th Aug low), a break below could take the pair towards 105.00 (Psychological level)
Equities Recap
European shares ended higher for a second straight session on Monday on signs that measures would be adopted to prop up growth in major economies, while bond yields rebounded amid improved global sentiment plagued by recession worries.
The UK's benchmark FTSE 100 closed up by 1.02 percent, Germany's Dax ended up by 1.32 percent, and France’s CAC finished the up by 1.34 percent.
U.S. stocks surged on Monday, building on previous session’s rally, fueled by growing hopes that major economies would act to prop up slowing growth, while technology stocks got a lift from trade optimism.
Dow Jones closed up by 0.96 percent, S&P 500 ended up 1.21 percent, Nasdaq finished the day up by 1.35 percent.
Treasuries Recap
U.S. Treasury yields rose on Monday and the yield curve steepened after the Treasury Department late on Friday said it was gauging market interest in issuing new ultra-long-dated debt, and as risk sentiment improved.
Benchmark 10-year notes were last down 21/32 in price to yield 1.611%. The yields have risen from a three-year low of 1.475% on Thursday.
Commodities Recap
Gold prices fell more than 1% on Monday as concerns eased that major economies could tip into recession, boosting investors’ affinity for risk and detracting from bullion’s safe-haven allure.
Spot gold was down 1% at $1,498.90 per ounce as of 1:47 p.m. EDT (1747 GMT). U.S. gold futures settled down 0.8% at $1,511.60.
Oil prices gained roughly 2% on Monday after a weekend attack on a Saudi oil facility by Yemen's Houthi forces threatened crude supplies and as traders looked for signs that top economies would take measures to counteract a global slowdown.
Brent crude , the international benchmark for oil prices, settled at $59.74 a barrel, rising $1.10, or 1.88%.
U.S. West Texas Intermediate (WTI) crude futures settled at $56.21 a barrel, up $1.34, or 2.44%.